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Betty Higgins started Betty's Cleaning Service on July 1. The following transactions occurred during Year 1: - July 1 Invested $20,000 cash in the business. - July 1 -Purchased a used truck for $25,000, paying $5,000 cash and borrowing $20,000 by signing a note payable due in June, Year 2. - July 1 -Paid $2,800 for a 1-year insurance policy starting July 1 . - July 5-Billed customers $3,300 for cleaning services. - July 12 -Purchased supplies on account for $2,100. - July 18-Paid employees' salaries of $3,000. - July 25-Billed customers $8,900 for cleaning services. - July 28 -Collected $3,300 cash from the July 5 billing. - July 31 -Paid $550 for truck repairs. - July 31-Withdrew $2,600 cash for personal use. Use the following chart of account numbers: Cash \#1100 Accounts Receivable #1200 Supplies \#1300 Prepaid Insurance \# 1400 Vehicles \#1500 Accumulated Depreciation, Vehicles \#1600 Accounts Payable \#2100 Salaries Payable \# 2200 Repairs Expense \# 5200 Insurance Expense \# 5300 Interest Expense \# 5400 Salaries Expense \# 5500 Supplies Expense \# 5600 Legal Fees Expense \#5300 Required a. Journalize the July transactions and post them to the ledger accounts. b. Prepare a trial balance for July 31 , Year 1. c. Journalize and post the following July adjustments: - On July 31 , Betty had provided $1,500 or unbilled services. - The truck has an estimated life of 5 years and no residual value. - Insurance for 1 month has expired. - Supplies on hand on July 31 are $700. - Employees have earned $800, and it will be paid in August. - The note payable has an annual rate of 5.5%. d. Prepare an adjusted trial balance. e. Prepare (i) an income statement, (ii) a statement of owner's equity, and (iii) actassified balance sheet for the month of July. f. Journalize and post the closing entries. g. Prepare a post-closing trial balance. h. Complete the appropriate ledger accounts. Note: Please leave one empty row between each journal entry. Also, don't use cents; round up/down. Salaries Payable \# 2200 Interest Payable \# 2300 Note Payable \# 2400 Betty Higgins, Capital \#3100 Betty Higgins, Withdrawals #3200 Income Summary \# 3300 Service Revenue #4100 Depreciation Expense \# 5100 Question 3 (60 marks) a. Journal Entries: h Trial halanna* c. Ioisnal ontrri adisctmonta. d. Adjusted trial balance: \begin{tabular}{|l|l|l|l|} \hline & & & \\ \hline & & & \\ \hline & & & \\ \hline & & & \\ \hline & & & \\ \hline & & & \\ \hline & & & \\ \hline & & & \\ \hline & & & \\ \hline & & & \\ \hline \end{tabular} e. i) Income statement: e. ii) Statement of owner's equity: e. iii) Classified balance sheet: x Paragraph y Styles f. Closing Journal Entries: \begin{tabular}{|l|l|l|l|l|} \hline & General Journal PAGE 3 & & & \\ \hline Date & Account Title & PR & Debit & Credit \\ \hline & & & & \\ \hline & & & & \\ \hline & & & & \\ \hline & & & & \\ \hline & & & & \\ \hline & & & & \\ \hline & & & & \\ \hline & & & & \\ \hline & & & & \\ \hline \end{tabular} g. Post-closing trial balance: h. General ledger accounts: \begin{tabular}{|c|c|c|c|c|c|} \hlineACCOUN & & & & & CCOUNTNO \\ \hline \begin{tabular}{l} DATE \\ Year 1 \end{tabular} & ITEM & \begin{tabular}{l} JRNL \\ REF. \end{tabular} & DEBIT & CREDIT & BALANCE \\ \hline & & & & & \\ \hline & & & & & \\ \hline \end{tabular} \begin{tabular}{||c||c||c||c||c||c||} \multicolumn{1}{|c||}{ Year 1} & ITEM & REF. & DEBIT & CREDIT & BALANCE \\ \hline \hline & & & & & \\ \hline & & & & & \\ \hline \end{tabular} \begin{tabular}{|c|c|c|c|c|c|} \hline \multicolumn{5}{|l|}{ ACCOUNT } & ACCOUNT NO \\ \hline DATE & & JRNL. & & & \\ \hline Year 1 & ITEM & REF. & DEBIT & CREDIT & BALANCE \\ \hline & & & & & \\ \hline \end{tabular} \begin{tabular}{|c|c|c|c|c|c|} \hline ACCOUNT & & & & A & CCOUNT \\ \hline \begin{tabular}{l} DATE \\ Year 1 \end{tabular} & ITEM & \begin{tabular}{l} JRNL. \\ REF. \end{tabular} & DEBIT & CREDIT & BALA C CE \\ \hline & & & & & \\ \hline \end{tabular} \begin{tabular}{|c|c|c|c|c|c|} \hline ACCOUNT & \multirow{2}{*}{\multicolumn{5}{|c|}{ Paragraph }} \\ \hline & & & & & \\ \hline \begin{tabular}{l} DATE \\ Year 1 \\ \end{tabular} & ITEM & \begin{tabular}{l} JRNL \\ REF. \end{tabular} & DEBIT & CREDIT & BALANCE \\ \hline & & & & & \\ \hline \end{tabular} \begin{tabular}{|c|c|c|c|c|c|} \hline ACCOUN & \multicolumn{5}{|c|}{ ACCOUNT NO } \\ \hline \begin{tabular}{l} DATE \\ Year 1 \\ \end{tabular} & ITEM & \begin{tabular}{l} JRNL \\ REF. \end{tabular} & DEBIT & CREDIT & BALANCE \\ \hline & & & & & \\ \hline \end{tabular} \begin{tabular}{|c|c|c|c|c|c|} \hline ACCOUN & & & & & CCOUNT NO. \\ \hline \begin{tabular}{l} DATE \\ Year 1 \\ \end{tabular} & ITEM & \begin{tabular}{l} JRNL \\ REF \\ \end{tabular} & DEBIT & CREDIT & BALANCE \\ \hline & & & & 11111 & \\ \hline \end{tabular} \begin{tabular}{|c|c|c|c|c|c|} \hline \multicolumn{4}{|c|}{ ACCOUNT } & \multicolumn{2}{|c|}{ ACCOUNTNO } \\ \hline \begin{tabular}{l} DATE \\ Year 1 \\ \end{tabular} & ITEM & \begin{tabular}{l} JRNL \\ REF. \\ \end{tabular} & DEBIT & CREDIT & BALANCE \\ \hline & & & & & \\ \hline \end{tabular} ACCT 1211: Accounting I \begin{tabular}{|c|c|c|c|c|c|} \hline ACCOUNT & \multicolumn{5}{|c|}{ ACCOUNT NO } \\ \hline \begin{tabular}{l||} DATE \\ Year 1 \\ \end{tabular} & ITEM & \begin{tabular}{l} JRNL. \\ REF. \end{tabular} & DEBIT & CREDIT & BALANCE \\ \hline & & & & & \\ \hline \end{tabular} \begin{tabular}{|c|c|c|c|c|c|} \hline ACCOUN & & & & & CCOUNTNO \\ \hline \begin{tabular}{l} DATE \\ Year 1 \\ \end{tabular} & ITEM & \begin{tabular}{l} JRNL \\ REF. \\ \end{tabular} & DEBIT & CREDIT & BALANCE \\ \hline & & & & & \\ \hline & & & & & \\ \hline & & & & & \\ \hline \end{tabular} \begin{tabular}{|c|c|c|c|c|c|} \hline ACCOUNT & & & & & CCOLNT NO \\ \hline DATE & & JRNL. & & & \\ \hline Year 1 & ITEM & REF. & DEBIT & CREDIT & BALANCE \\ \hline & & & & & \\ \hline \end{tabular} \begin{tabular}{|c|c|c|c|c|c|} \hline \multicolumn{2}{|c|}{ ACCOUNT } & & & \multicolumn{2}{|c|}{ ACCOUNT NO } \\ \hline \begin{tabular}{l} DATE \\ Year 1 \\ \end{tabular} & ITEM & \begin{tabular}{l} JRNL. \\ REF. \end{tabular} & DEBIT & CREDIT & BALANCE \\ \hline & & & & & \\ \hline & & & & & \\ \hline & & & & & \\ \hline \end{tabular} \begin{tabular}{|c|c|c|c|c|c|} \hline ACCOUNT & & & & A & CCOUNTNO \\ \hline \begin{tabular}{l} DATE \\ Year 1 \\ \end{tabular} & ITEM & \begin{tabular}{l} JRNI \\ REF \end{tabular} & DEBIT & CREDIT & BALANCE \\ \hline & & & When & & \\ \hline & & & & & \\ \hline \end{tabular} Betty Higgins started Betty's Cleaning Service on July 1. The following transactions occurred during Year 1: - July 1 Invested $20,000 cash in the business. - July 1 -Purchased a used truck for $25,000, paying $5,000 cash and borrowing $20,000 by signing a note payable due in June, Year 2. - July 1 -Paid $2,800 for a 1-year insurance policy starting July 1 . - July 5-Billed customers $3,300 for cleaning services. - July 12 -Purchased supplies on account for $2,100. - July 18-Paid employees' salaries of $3,000. - July 25-Billed customers $8,900 for cleaning services. - July 28 -Collected $3,300 cash from the July 5 billing. - July 31 -Paid $550 for truck repairs. - July 31-Withdrew $2,600 cash for personal use. Use the following chart of account numbers: Cash \#1100 Accounts Receivable #1200 Supplies \#1300 Prepaid Insurance \# 1400 Vehicles \#1500 Accumulated Depreciation, Vehicles \#1600 Accounts Payable \#2100 Salaries Payable \# 2200 Repairs Expense \# 5200 Insurance Expense \# 5300 Interest Expense \# 5400 Salaries Expense \# 5500 Supplies Expense \# 5600 Legal Fees Expense \#5300 Required a. Journalize the July transactions and post them to the ledger accounts. b. Prepare a trial balance for July 31 , Year 1. c. Journalize and post the following July adjustments: - On July 31 , Betty had provided $1,500 or unbilled services. - The truck has an estimated life of 5 years and no residual value. - Insurance for 1 month has expired. - Supplies on hand on July 31 are $700. - Employees have earned $800, and it will be paid in August. - The note payable has an annual rate of 5.5%. d. Prepare an adjusted trial balance. e. Prepare (i) an income statement, (ii) a statement of owner's equity, and (iii) actassified balance sheet for the month of July. f. Journalize and post the closing entries. g. Prepare a post-closing trial balance. h. Complete the appropriate ledger accounts. Note: Please leave one empty row between each journal entry. Also, don't use cents; round up/down. Salaries Payable \# 2200 Interest Payable \# 2300 Note Payable \# 2400 Betty Higgins, Capital \#3100 Betty Higgins, Withdrawals #3200 Income Summary \# 3300 Service Revenue #4100 Depreciation Expense \# 5100 Question 3 (60 marks) a. Journal Entries: h Trial halanna* c. Ioisnal ontrri adisctmonta. d. Adjusted trial balance: \begin{tabular}{|l|l|l|l|} \hline & & & \\ \hline & & & \\ \hline & & & \\ \hline & & & \\ \hline & & & \\ \hline & & & \\ \hline & & & \\ \hline & & & \\ \hline & & & \\ \hline & & & \\ \hline \end{tabular} e. i) Income statement: e. ii) Statement of owner's equity: e. iii) Classified balance sheet: x Paragraph y Styles f. Closing Journal Entries: \begin{tabular}{|l|l|l|l|l|} \hline & General Journal PAGE 3 & & & \\ \hline Date & Account Title & PR & Debit & Credit \\ \hline & & & & \\ \hline & & & & \\ \hline & & & & \\ \hline & & & & \\ \hline & & & & \\ \hline & & & & \\ \hline & & & & \\ \hline & & & & \\ \hline & & & & \\ \hline \end{tabular} g. Post-closing trial balance: h. General ledger accounts: \begin{tabular}{|c|c|c|c|c|c|} \hlineACCOUN & & & & & CCOUNTNO \\ \hline \begin{tabular}{l} DATE \\ Year 1 \end{tabular} & ITEM & \begin{tabular}{l} JRNL \\ REF. \end{tabular} & DEBIT & CREDIT & BALANCE \\ \hline & & & & & \\ \hline & & & & & \\ \hline \end{tabular} \begin{tabular}{||c||c||c||c||c||c||} \multicolumn{1}{|c||}{ Year 1} & ITEM & REF. & DEBIT & CREDIT & BALANCE \\ \hline \hline & & & & & \\ \hline & & & & & \\ \hline \end{tabular} \begin{tabular}{|c|c|c|c|c|c|} \hline \multicolumn{5}{|l|}{ ACCOUNT } & ACCOUNT NO \\ \hline DATE & & JRNL. & & & \\ \hline Year 1 & ITEM & REF. & DEBIT & CREDIT & BALANCE \\ \hline & & & & & \\ \hline \end{tabular} \begin{tabular}{|c|c|c|c|c|c|} \hline ACCOUNT & & & & A & CCOUNT \\ \hline \begin{tabular}{l} DATE \\ Year 1 \end{tabular} & ITEM & \begin{tabular}{l} JRNL. \\ REF. \end{tabular} & DEBIT & CREDIT & BALA C CE \\ \hline & & & & & \\ \hline \end{tabular} \begin{tabular}{|c|c|c|c|c|c|} \hline ACCOUNT & \multirow{2}{*}{\multicolumn{5}{|c|}{ Paragraph }} \\ \hline & & & & & \\ \hline \begin{tabular}{l} DATE \\ Year 1 \\ \end{tabular} & ITEM & \begin{tabular}{l} JRNL \\ REF. \end{tabular} & DEBIT & CREDIT & BALANCE \\ \hline & & & & & \\ \hline \end{tabular} \begin{tabular}{|c|c|c|c|c|c|} \hline ACCOUN & \multicolumn{5}{|c|}{ ACCOUNT NO } \\ \hline \begin{tabular}{l} DATE \\ Year 1 \\ \end{tabular} & ITEM & \begin{tabular}{l} JRNL \\ REF. \end{tabular} & DEBIT & CREDIT & BALANCE \\ \hline & & & & & \\ \hline \end{tabular} \begin{tabular}{|c|c|c|c|c|c|} \hline ACCOUN & & & & & CCOUNT NO. \\ \hline \begin{tabular}{l} DATE \\ Year 1 \\ \end{tabular} & ITEM & \begin{tabular}{l} JRNL \\ REF \\ \end{tabular} & DEBIT & CREDIT & BALANCE \\ \hline & & & & 11111 & \\ \hline \end{tabular} \begin{tabular}{|c|c|c|c|c|c|} \hline \multicolumn{4}{|c|}{ ACCOUNT } & \multicolumn{2}{|c|}{ ACCOUNTNO } \\ \hline \begin{tabular}{l} DATE \\ Year 1 \\ \end{tabular} & ITEM & \begin{tabular}{l} JRNL \\ REF. \\ \end{tabular} & DEBIT & CREDIT & BALANCE \\ \hline & & & & & \\ \hline \end{tabular} ACCT 1211: Accounting I \begin{tabular}{|c|c|c|c|c|c|} \hline ACCOUNT & \multicolumn{5}{|c|}{ ACCOUNT NO } \\ \hline \begin{tabular}{l||} DATE \\ Year 1 \\ \end{tabular} & ITEM & \begin{tabular}{l} JRNL. \\ REF. \end{tabular} & DEBIT & CREDIT & BALANCE \\ \hline & & & & & \\ \hline \end{tabular} \begin{tabular}{|c|c|c|c|c|c|} \hline ACCOUN & & & & & CCOUNTNO \\ \hline \begin{tabular}{l} DATE \\ Year 1 \\ \end{tabular} & ITEM & \begin{tabular}{l} JRNL \\ REF. \\ \end{tabular} & DEBIT & CREDIT & BALANCE \\ \hline & & & & & \\ \hline & & & & & \\ \hline & & & & & \\ \hline \end{tabular} \begin{tabular}{|c|c|c|c|c|c|} \hline ACCOUNT & & & & & CCOLNT NO \\ \hline DATE & & JRNL. & & & \\ \hline Year 1 & ITEM & REF. & DEBIT & CREDIT & BALANCE \\ \hline & & & & & \\ \hline \end{tabular} \begin{tabular}{|c|c|c|c|c|c|} \hline \multicolumn{2}{|c|}{ ACCOUNT } & & & \multicolumn{2}{|c|}{ ACCOUNT NO } \\ \hline \begin{tabular}{l} DATE \\ Year 1 \\ \end{tabular} & ITEM & \begin{tabular}{l} JRNL. \\ REF. \end{tabular} & DEBIT & CREDIT & BALANCE \\ \hline & & & & & \\ \hline & & & & & \\ \hline & & & & & \\ \hline \end{tabular} \begin{tabular}{|c|c|c|c|c|c|} \hline ACCOUNT & & & & A & CCOUNTNO \\ \hline \begin{tabular}{l} DATE \\ Year 1 \\ \end{tabular} & ITEM & \begin{tabular}{l} JRNI \\ REF \end{tabular} & DEBIT & CREDIT & BALANCE \\ \hline & & & When & & \\ \hline & & & & & \\ \hline \end{tabular}
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